The Somerset herald. [volume] (Somerset, Pa.) 1870-1936, 1887-09-07
THAT BIG 3. AND o. DEAL.
Baltimore Business Men Greatly
Disturbed ByIt.

/ Disturbed ByH.
NEW YoRK. Aug 3l-The following official
announcement was made to-day by the Pres
ident of the United States Express Compa-
NY The plant, franchises and business oi
the Baltimore and Ohio express has been sold
to i,e United States Express Company for a
period of thirty years The sale WAS made
directly by the Baltimore and Ohio Railraod
Company, no other parties being recognized.
/ The agreement; was consummated last week
and we take possession TO morrow. The me-
gotiatlons for the sale have been pending
about month having begun with President
Garrett before he went TO Europe"
Ii is stated on Wall street that the price
paid was s2.5oo,0oo, of which si.ooo,coo was
paid in cash and 81 5000 in United States
States express denies the correctness of the
| figures, but declines to state the terms on
which the property was purchased, saying
that the matter is private. No change will
be made in the management or name OF the
company
This adds about 5000 miles of territory to
the $1,000 miles already operated over by the
United States Express Company and makes
it the most powerful company of its kind in
America.
BALTIMORE, Sept 1.-The Baltimore and
Ohio Express Company passed into the
hands of the United States express company
\ and its employees were notified of the change.
There will, for the present at least be no
changes in the employees, and the reports
will be made to the general manager as here
.tofore.
Speaking of the sale of John X. Cowan,
counsel for the Baltimore and Ohio com,
pany, said;
'The statement that the Baltimore and
Ohio express has been sold to the United
States express is not correct. There has been
a contract entered into between the two COM
panies, by which the United States express
company is TO run the Baltimore and Ohio
for thirty years, for which the former is to
pay the latter company certain percentage
of the earnings. We decline to say what the
percentage will be-
1t is now very generally believed here that
the sale of the express is not the last of the
Baltimore and Ohio railroad company. Spec
ial dispatches from New York render it con
elusive to the minds of many prominent
business men that the telegraph system of
the company will soon pass into other hands
if the negotiation is not already concluded
The impression also prevails that Mr.. Gar
rett is anxious to dispose of the road, and
the announcement ofits sale at any time will
create no surprise here.
Vice-President Spencer, in answer to in
quiries on the subject, confirmed the dispos-
al Of the plant of the Baltimore and Ohio
Express company and of the execution of
contract between the railroad company and
the United States Express company for
period of thirty years, bu declined TO give
any further particulars. He, however re-
garded the arrangement as quite advantageous
to the interests both of the railroad company
and the express company.
Mr.. Spencer stated that there was no truth
whatever in the statements as to negotiation
with London bankers for the control of the
railroad company, or that the house of
Robert Garrett 4 Sons was selling or intend
ing to sell its holdings and he knew of no
such intentions on the part of any other
large holders, He tereatei as absurd the
statement that the Pennsylvania railroad
had advanced any money TO the Baltimore
and Ohio company looking to its control or
for any other purposes. The control of the
company had not, and would not pass into
any rival hands; il would continue as an
independent trunk line, with the Interests of
all classes Of stockholders fully and amply
cared for, working, it is hoped, in such har-
mony with connecting and competing inter
ests as would secure the best results for all.
The company is doing large business and
has met, and was prepared to meet prompt
ly all its Obligations of every character.
New YoRR, Sept. III. PIerpont Morgan
who returned from West Point to-day, de-
clined to make any statement until he could
make one officially regarding the connection
of his firm with the syndicate 10 take up the
majority of the b. q o. stock He also re-
fused TO deny that arrangements are now
pending looking TO that end. All this only
goes to prove the correctness of the report
made yesterday that an arrangement has
been entered into which will relieve the
Baltimore and Ohio Railroad from its large
and pressing floating debt. which would un-
doubtedly soon have swamped the company
III the present state of the money market,
and in some measure make change in its
management and the conduct of its bust
ness.
Ii is known that arrangements have been
entered into, chiefly in London, through
which J. 5. Morgan & Co will advance
large amount of cash TO the Baltimore and
Ohio Company. 1t is estimated the floating
debt of the Baltimore and Ohio. which it
was necessary 10 care for at once, is about
Sl1,ooo,0o0. About 5000 900 have already
been taken up.